NEW YORK - McDonald€™s announced last week that its net income rose 5% in the first quarter, reports The Associated Press, adding that a large part of the QSR€™s success is being driven by its emphasis on affordability and "the rollout of popular items such coffee frappes and fruit smoothies that have high profit margins and attract diners throughout the day."
McDonald€™s COO Don Thompson said that the QSR is planning to add the iced "Cherry Berry Chiller" to its lineup of specialty drinks in the coming weeks.
Dow Jones writes that McDonald's has been able to boost in-store traffic and sales faster than its competitors because of its "increasingly diverse menu," which includes value-price offers and higher margin items like frappes, smoothies and specialty coffees.
McDonald€™s is also planning to introduced its smoothies to more countries and increase its breakfast business in Europe this year.
"The ongoing strength of McDonald€™s results, amidst persistent economic headwinds, is a testament to our customer-focused plans and our proven business model," said McDonald's CEO Jim Skinner, who is retiring this summer.